Because it's a bit silly to be doing so. When I think of security, the first thing that comes to mind isn't sharing a server (to which I have no root access) with an unknown number of different users .
Still, some shared hosts can be slightly better than others. For example, if I were forced to use a shared server and still attempt to be conscientiousness about security, I would look for one that uses something like suPHP and the Suhosin patch for PHP.
The former, for example, would eliminate the need to give write access to 'group' or 'others' on a given directory just so PHP can write to it; suPHP would cause the scripts to be executed under the context of your user account, thus it can write to any directories you ('owner') can. However, there are possible performance implications involved with such a setup, but then again if we're talking about a shared server then I can assume performance wasn't the biggest concern either.